Lehamns will not go down. It is already down. Its now just a matter of time before the Fed's decide they have to bail them out like they did Bear Stearns.
Lehman collected lots of money on some shonky products here in Australia from councils mainly (or at least thats what the story says). It was all tied up to high yeilding low quality notes called Junk Bonds.
Now Lehman is no Babcock and Brown Australia. Babcock still carries the wish list which its accountants give some intrinsic value to which is what gives it that 7% of its market capital not yet eroded through its lies to remain listed.
I reiterate my previous remarks that B&B were insolvent and should have notified ASIC and the ASX of its true position which both organisations have given a nod and wink to it instead because of the sheer impact its true position would cause in the market.
Babcock cannot have lost 93% of its market value and remains solvent. Not possible. Whats known (the biggest kept secret being spilled out by disgruntled ex Babcocks) is that they are being proped up by the regulator and at least in Queensland by a state government that allows conflicts of interest to give the impression they have somthing in the wind which is value. (and its not pi ss).
We are in for a very very tough time indeed. Even if Lehman is taken out by interests in Dubai the bail out won't help Babcock and Brown.
